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[1/2]A combination photo shows Canadian investment banks RBC, CIBC, BMO, TD and Scotiabank in Toronto, Ontario, Canada on March 16, 2017. REUTERS/Chris Helgren/ Acquire Licensing Rights
TORONTO, May 22 (Reuters) – Canadian banks are expected to report a rise in bad debt provisions and highlight risks from commercial property loans when they report earnings this week, with the country’s No.2 bank TD (TD.TO) in focus after its acquisition of First Horizon (FHN.N) failed.
Bay Street analysts have lowered their second quarter earnings expectations for Canadian banks, anticipating higher expenses and slowing loan growth as turmoil south of the border weighs on the broader banking sector. Still, investors view Canadian banks as safer bets than their U.S. counterparts due to their strong capital levels.
“We believe that cracks in the foundation will become evident,” Barclays analyst John…
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